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Statement I: The local government announced a new industrial subsidy policy last month. Statement II: Several new manufacturing units have registered to open in the city this week.
I is the cause and II is the effect
II is the cause and I is the effect
Both are independent causes
Both are effects of a common cause
I is the cause and II is the effect
Quick Trick: Look for a temporal sequence where Statement I provides an incentive or facilitation (the cause) that directly triggers an action or response (the effect) in Statement II.
Look for a temporal sequence where Statement I provides an incentive or facilitation (the cause) that directly triggers an action or response (the effect) in Statement II.
Analyze Statement I
The government announces an industrial subsidy policy. This policy acts as a catalyst by providing financial incentives to businesses, which typically influences industrial investment decisions.
Analyze Statement II
Several new manufacturing units register to open. This is a behavioral response. Since registration for new units often follows the announcement of government benefits to avail those subsidies, Statement II is the logical outcome of Statement I.
Establish the Causal Link
The subsidy policy (Cause) was introduced last month, and the registration of manufacturing units (Effect) happened this week. The timeline confirms that the policy announcement provides the necessary impetus for the units to register.
B: Incorrect because the units would not cause the government policy. C: Incorrect because there is a clear logical connection, they are not unrelated events. D: Incorrect because there is a direct sequential link, not a third hidden factor.
A is correct because Statement I describes the provision of an incentive (subsidy) which serves as the direct cause for the subsequent business activity (registration of new units) described in Statement II.
In cause-effect questions, always check if one statement provides a 'facility' or 'rule' and the other describes a 'resultant action' taken by individuals or organizations.